District of Columbia Detailed Subordination Provision

State:
Multi-State
Control #:
US-OL20022B
Format:
Word; 
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Description

This office lease form is a more detailed, more complicated subordination provision stating that subordination is conditioned on the landlord providing the tenant with a satisfactory non-disturbance agreement.

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FAQ

Seller closing costs in DC average approximately 2.2% of the home sales price, which is $6,050 on a $275,000 home (median sales price). Sellers must also subtract realtor commissions from their sales proceeds, which is an average of 5.25%.

The primary effect of an SNDA is that the tenant agrees to subordinate its lease to the mortgage in exchange for the lender agreeing not to disturb the tenant if the lender forecloses its superior security interest in the real property.

In general, both tenant and subtenant are bound by the terms of the lease. If the subtenant does not pay rent, the landlord may hold the tenant responsible for it. The subtenant is also expected to to follow the rules of the lease and is responsible for the general upkeep of the property or for damages.

Who Pays Transfer Taxes in Washington, D.C.: the Buyer or the Seller? In Washington, D.C., the tax is split between the buyer and the seller. The seller pays the recordation tax, and the buyer pays the transfer tax.

Washington DC Subletting Laws If the lease allows subletting or does not mention it, the tenant can sublet the property, although the landlord may condition their consent on the prospective subtenant meeting all of the housing provider's reasonable rental qualification guidelines.

DC Code Citation: Title 42, Chapter 11. 1.45% of consideration or fair market value on the entire amount, if transfer is $400,000 or greater. Note: Fair market value is used when the consideration is nominal, i.e. less than 30% of FMV. Each transfer of real property at the time the deed is submitted for recordation.

Purchase Transactions: City Recordation Tax (paid by buyer)D.C. First Time Homebuyer Tax0.725%Transaction amount $400,000 or above1.45%Transaction below $400,0001.10%All non Class 1 transactions1.45%

Recordation & Transfer Taxes In the case of instruments conveying title to property, the recordation tax shall be at the rate of $4.10 per $500.00 rounded, of the actual consideration paid or to be paid, in the case of instruments securing a debt, the tax shall be on the amount of the debt secured.

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District of Columbia Detailed Subordination Provision